Yahoo Inc's strategic challenges and competitive positioning in 2009

YAHOO INC CASE STUDY

In the 2009 case, it is clear that Yahoo has to master several problems in the presentation. First, there is a problem with the leadership and its strategic management at the top of the management of Yahoo. The company has not looked beyond single operational services it offers to its customers as most of them are running out of competition with no immediate actions being taken, in this case, long-term remedy measures. The company lacks credible remedy measures in place that will offer long-term solutions to its challenges. There is a high stage of fall in revenues and growth within the company. The company is experiencing a challenge to deal with the pressure of competing with its competitors in the market. The company lacks partnership advances as this has led to a stagnating performance, leading it to cut short the number of its employees. Furthermore, there is no immediate show of innovative growth within the company, something has become a bad culture and damaged the sustenance of the incorporation.

Conduct Strategic Analysis:

Yahoo Company lacks cooperation and integration with other pertinent companies. The company is facing massive challenges regarding creating more opportunities for its growth, together with sustaining a competitive market. The company does not have to rely simply on its specific strategies without seeking consent and support from the others like Microsoft and Google. In this case, Yahoo appears to be exhausting its strengths with no immediate member of the conglomerate joining them. The company has no innovative remedy for its short- and long-term challenges. Yahoo Inc. has insufficient leadership that is capable of lifting up the falling strategic measures of the corporation. Moreover, Yahoo Company seems to have a poor culture in its strategic progress. As such, the corporation needs to create mergers, change its managerial structures, establish a culture of continued innovativeness and change, and develop a body that is concerned with checking on the state of the corporation in the market (Ireland et al., 2012).

Porter's Six Forces

Technology

Yahoo has done a lot in fostering its presence through technological innovations. Nonetheless, it needs to focus on innovations and adopting new marketing options and platforms for its customers.

Threat of New Entrants

It is not long ago when Yahoo was the main force in the market. Nonetheless, with the entry of Google and Snapchat, among other entrants, Yahoo has diminished in its initial growth. Such is likely to happen even with this state of the company, and hence something has to be done.

Bargaining power of buyers

The bargaining power of the company has been good. Nonetheless, the recent befalls, as indicated by the case, lowers this power, which should not be the case (Hitt et al., 2015).

Bargaining power of competitors

Competitors are present, but their management raises the stature of the company internally and externally.

Threat of substitute services

The similar services offered by Google and Snapchat are a competitive force that is likely to make Yahoo miss its grip. Thus, it needs to be more innovative and diverse.

Environment

The environment needs to be adjusted through strategic innovation and diversity such that more spaces and opportunities are opened for the company.

Value chain

The corporation has to seek more affordable and improved value chain to sustain its lines of production.

SWOT Analysis

Strengths

Large mail subscriber base

Global brand

Weaknesses

Unknown service production

Weak financial health

Opportunities

Customized development will boost revenue growth

Huge potential if it combines its services together with social media platforms like Flickr

Threats

Increasing competition

Declining prominence as a search engine

Alternative solutions:

Diversification: This will ensure that the incorporation does not dwell on one aspect, as being a search engine alone, but can thrive in other fields, hence sustain its productivity.

Creation of mergers: Mergers will help the company to deal with individual declines regarding production and safety

Stable leadership: The Company needs to invest in a culture of sustained leadership envisioned in long-term plans that are not interfered by new platforms from new leaderships, notably happening almost sometimes within a year in Yahoo Inc.

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